Your Tax Return is Not a Tax Strategy

There are three stages to a successful tax strategy. First, there is the strategy itself. That’s where you and your advisors look at your current situation and with your goals and objectives clearly in mind, line out the strategy to get where you want to go. Generally, the strategies I work out with our USTaxAid Services clients have immediate steps and longer range steps. We may go as far out as five years, if your goals are big enough that allow us to take some intermediate steps.

I call the initial tax strategy call with my clients the ’30,000 foot view.’ It’s a chance for you to step back and see clearly where you are and where you’re going, based on your current plan. If you’re overpaying on your taxes now because of the wrong structure, missed deductions or faulty tax preparation, it’s only going to get worse as new tax laws come into place and your business and investments grow and mature.

It’s just like having a funny noise in your car. If you just let it go, hoping it will fix itself, it never seems to work. If you fix it in the beginning, you’ll pay a small bill. If you wait until there is real damage, you’re likely to have a much bigger repaid bill plus run the risk of being stranded alongside the road somewhere you don’t want to be. The tax strategy looks for those ‘funny noises’ in your current plan.

But that is only the first phase. The second phase is to implement the changes. For example, let’s say we determine you need to have a different type of business structure so that you can pay less tax. If you don’t properly put that business structure in place in a timely fashion, the strategy doesn’t help you a bit.

And then finally, you need to have a tax return prepared that properly reflects your strategy. For example, I might point out that you’re missing the home office deduction in your S Corporation. There is no home office deduction form in the Form 1120S package (what you use to report your S Corporation) like there is if you have a Schedule C on your individual tax return. So it’s easy to be confused. Where do you take the deduction? If neither you or your tax preparer know what to do in that case, you might just lose that deduction. On average, we find that that deduction will save $2,000 or more in taxes. But only if you take the deduction and report it correctly.

If you don’t have a properly prepared tax return, that strategy didn’t help you.

You need all three steps: strategy and plan development, implementation and tax compliance to have a successful tax strategy that saves you money, protects your assets and still lets you sleep at night.

If you skip any one of these steps, your results simply won’t be as good.

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In 2017, I became an Enrolled Agent(EA), considered one of America's Tax Experts. However, the one thing I learned becoming an EA is how much we don't know and being one of America's Tax Experts you have to constantly keep learning. I search everywhere for the best opportunities to learn more about business and real estate taxation. I wanted the most current and updated information so I can provide the best level of service to my clients. When I learned that Diane Kennedy had a twice a month coaching program that gives you the most updated information about the niche I service. This was a no-brainer! Twice a month I get access to one of America's top author and expert on business and real estate tax topics. If you are on the fence about signing up for coaching. You need to hop off and join!

C Samaniego, California

I love, love, love your twice-monthly coaching program! You pack more info into that half hour than day-long seminars I’ve attended! I always download the home study course and the recording so I can go over it a few more times before your next coaching session– and I find that I still pick up some additional strategies then. I know how much work and research you put into each coaching session and home study course, and it does not go unnoticed. Thank you!

Myriam M.

Thank you for your Saturday consult, Diane. It certainly cleared the muddiness in my decision re Sub S election. I learned more from you in 30 minutes than I learned from my past year with the big accounting firm that I use! I get vague answers to specific questions from them but I really felt your answers were focused, actionable, and specific. Thank you again.

Pat S, Iowa

Congratulations on publishing an important and wonderful book.

Kristen D.

Wow, EXCELLENT coaching session! You packed a lot of "meat" into this 30-minute coaching call. I will be re-listening and re-reading the Home Study course numerous times for this topic. Thank you, Diane!

Myriam M

I am absolutely floored by Diane Kennedy's breadth of experience when it comes to the entirely too complicated US tax code! She has reduced my businesses tax bill by MILES and has actually, somehow, gotten us a refund! For the record, our international business turns over $80 million annually! She is very responsive to all of my queries and is just an absolute pleasure to work with. I really don't know what we would do without her and her team. Thank you Diane and USTaxAid!!!

A VERY happy client!

Please tell Diane she is fantastic. I really enjoyed talking to her and her knowledge is amazing. It is very helpful to have her guidance.

Laura M, California

Thank you for your great books and information.

Jon B, CA

An entirely new perspective...new possibilities...I loved every minute!

Christine H, Lakeport, CA

I can take all that I learned and apply it to my business, improve efficiency and create more with less!

Andrea O, Covina, CA

Diane, You have made and saved me tons of money over the last 5 years!

Greg M, Camden, IN

I have initially heard Diane's name from the podcast series called "Lifetime Cashflow Through Real Estate Investing" offered by Rod Khleif. To say Diane offered a lot of valuable tips during the podcast is an understatement! She touched upon such important and valuable topics as cost segregation, things to look for in a property inspector, write off when filing income taxes, and etc. I then went ahead and jumped on Diane's website USTaxAid.com. After reviewing just a handful of Diane's articles, I have found myself emerged into reading up and following up further on such important topics for any investor as itemizing deductions, searching for big cash-flowing properties under the new administration and much much more. I'm really excited about finding Diane's site and making a good use of her blog posts and articles. I hope other real estate investors will benefit from it as well! Thank you Diane!

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Diane, You're such a wealth of knowledge.

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Thank you for writing from the heart. You challenged me today, supported my dream and helped me move forward.